Oracle has reported a disappointing quarter, amplifying concerns that the software company might not regain its footing as quickly as the rest of the industry.
It earned $507.9 million, or 9 per cent, in its fiscal quarter ending February 28th, a 13 per cent drop from net income of $582.7 million, or 10 cents per share, at the same time in the prior year.
The results match the lowered expectations Oracle set on March 1st when the company warned it would miss its previous earnings target of 10 cents per share.
Oracle's quarterly revenue totalled $2.23 billion, a 17 per cent fall from $2.67 billion from last year.
More significantly to investors, the company's sales of software licenses plunged 30 per cent from the prior year to $789.6 million. It represents the sharpest decline during four consecutive quarters of Oracle's falling software sales.
Industry analyst Mr Mark Verback of ThinkEquity Partners says the latest erosion is particularly disquieting because the quarter is being compared to the period in the prior year when Oracle's softening sales first became evident.
Management blame the slowdown almost entirely on a recession that prompted companies worldwide to curb their spending on software and other technology.
Oracle says its business will recover in step with the rest of the industry.
PA